Business administration and human resources are two very important functions of a business, even a small business. While they share some commonalities, there are some important distinctions between these two functions. Understanding the differences between business administration and human resource activities can help companies ensure that their greatest resources, time and money, are being put to the most effective use.

Business Administration Definition

Business administration is a term used to cover all of the business functions of a business. Business administration is the process of organizing the business's personnel and resources to meet business goals and objectives. These processes include human resources, as well as operations management, financial management and marketing management. Human resources is a very important part of business administration because it is responsible for personnel administration.

Human Resources Definition

Human resources is the business administration function responsible for finding, hiring, managing and retaining employees, and for ensuring that the right employees, in the right numbers, are deployed throughout the organization to achieve its goals. Human resources is a function that exists in every business regardless of size, industry or geographic location. In fact, even though small businesses may not have a formal human resource department or an employee with a title that includes "human resources," the function is performed when employees are hired, training, supervised and, hopefully, retained.

Interaction

Clear alignment between business administration and human resources is critical even in the smallest organizations. Human resources can be very costly. The right employees can help a business achieve its goals cost-effectively. Aligning business needs with employee selection, training and development is critical, as is the forecasting of future business needs based on predicted changes in the industry, technology and consumer demand.

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About the Author

Leigh Richards has been a writer since 1980. Her work has been published in "Entrepreneur," "Complete Woman" and "Toastmaster," among many other trade and professional publications. She has a Bachelor of Arts in psychology from the University of Wisconsin and a Master of Arts in organizational management from the University of Phoenix.